One of the basic requirement of every human being is a house. However purchasing an own house in India is like a dream come true for many individuals. In India, only high-income group and few middle-class people can afford to purchase a house. A lower income group has no option or very few option for the housing. To address this issue the government of India has taken a major step towards launching Pradhan Mantri Awas Yojana PMAY or housing for all scheme. This scheme will ensure that people will get a house based on their financial capacity. In this post, we will learn about Pradhan Mantri Awas Yojana (PMAY) and Subsidy Loan applicable under this scheme.
What is Pradhan Mantri Awas Yojana (PMAY)?
Pradhan Mantri Awas Yojana Scheme is an affordable housing scheme launched by the government of India. The vision of this scheme is to provide pucca house with water connection, toilet facilities, and 24×7 electricity supply to every family by 2022. The year 2022 is selected because by that time nation completes 75 years of its independence. The basic objectives of this scheme are given below.
- To provide affordable housing for weaker section through credit link subsidy scheme
- Affordable housing in partnership with public and private sectors
- Slum rehabilitation
- Subsidy for beneficiary-led individual house construction /enhancement.
- Poor people of India belonging to Lower Income Group (LIG) and Economically Weaker Section (EWS) group.
Scope of Scheme – Across India
Launched by – Prime Minister Narendra Modi
You are eligible to apply for a house under Pradhan Mantri Awas Yojana (PMAY) if you are from Low-income group, Economically Weaker Section group or Mid Income Group.
Low Income Group (LIG) – LIG households are defined as households having an annual income between 3 Lakh to 6 Lakh.
Economically Weaker Section (EWS) – EWS households are defined as households having an annual income up to 3 Lakh.
Mid-Income Group-1 – Individual with house hold income between 6 Lakh to 12 Lakh falls under this group.
Mid-Income Group-2 – Individual with house hold income between 12 Lakh to 18 Lakh falls under this group.
Another condition is that you should not have any house on your name.
If you are fulfilling above two conditions you can apply for PMAY.
Subsidy Loan- Credit linked subsidy scheme
The subsidy loan under Pradhan Mantri Awas Yojana is known as a credit linked subsidy scheme. This scheme is available at a majority of public and private sector bank such as canara bank, bank of India, ICICI bank etc.
- Under this scheme Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans from Banks, Housing Finance Companies and other such institutions would be eligible for an interest subsidy at the rate of 6.5 % for a tenure of 15 years or during tenure of loan whichever is lower.
- The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and additional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be credited upfront to the loan account of beneficiaries through lending institutions resulting in reduced effective housing loan and Equated Monthly Installment (EMI).
- Credit Linked Subsidy loans can be availed for new construction and addition of rooms, kitchen, toilet etc., to existing dwelling as incremental housing.
- Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the lending institutions and for monitoring the progress of this component.
|Credit Link Subsidy Scheme||Subsidy Details|
|Lower Income Group/Economically Weaker Section|
|Mid-Income Group 1|
|Mid-Income Group 2|
How to apply for Pradhan Mantri Awas Yojana (PMAY)? – Online Method
There forms for applying under Sum Dwellers and other three category is different.
Online Application process for Lower Group Category (Sum Dwellers)
Step 1 – Log in to the official website of PMAY ( http://pmaymis.gov.in/)
Step 2 – From the Top menu bar click on the option “Citizen Assessment.”
Step 3 – From the Drop Down Menu select the option “slum dwellers.”
Step 4 – On the page that appears, you will have to enter your Aadhaar Number and your name, as put forth in your Aadhaar card. In case you do not have your Aadhar Number, you will have to provide your virtual ID.
Step 5 – Once you enter the details you will be redirected to the main application page. Enter the required information such as residential and permanent address, residential income, ownership details of your existing houses.
Step 6 – Check terms of the agreement & enter the proper captcha code that appears on screen. Click on the “Save” option to get your application acknowledgement details recorded on this website.
Online Application process for LIG/EWS,MIG-1 & MIG-2 Category
Step 1 – Log in to the official Pradhan Mantri Awas Yojana website.
Step 2 – From the Top navigate menu bar, click on the option marked “Citizen Assessment.”
Step 3 – You will see drop down option select the “Benefit Under Other 3 Components”
Step 4 – Furnish the details like your Aadhaar card number and your name on the page.If you do not have the Aadhaar card number, you will need to enter your virtual ID.
Step 5 – You will be taken to the new page, where you will have to enter all relevant personal information like your annual household income, residential and permanent address, etc.
Step 6 – Check the terms of the agreement at the bottom of the page & enter the captcha code that appears and register the details provided with the website.
Make sure to keep all documents ready before starting the process. You will need Aadhaar, PAN, residential proof, Income proof, Affidavit stating that you don’t have any pucca house, Approved plan for construction, NOC by society, letter of property allotment & receipt of advance payment made.
It generally takes 3-4 months to complete verification and receiving subsidy amount in your account.
How to apply for Subsidy Home Loan under PMAY? – Offline Method
Follow steps given below to apply for Subsidy Home Loan under PMAY scheme.
- In order to apply subsidy home loan under PMAY you need to fill up Individual Home Loan application form.
- Once you complete the form you can submit form directly or through the local ULB. You need to attach self declaration affidavit as a proof of income.
- Final decision on subsidy and loan will be taken by bank (Prime lending agency).
- Bank submits this claim detail to CNA (Central Nodal Agency).
- Central Nodal Agency will release subsidy claim amount to bank.
- Credit link subsidy deposited by bank to beneficiary loan account.
Subsidy Applicable to PMAY
Under this scheme, you can avail following subsidy benefits.
- A Subsidy will be granted to EWS and LIG group under this scheme. The value of subsidy will be in the range of 1 Lakh to 2.3 Lakh. This subsidy will be directly given by central government.
- Government loan up to 6 Lac for the period of 15 years or less will be provided for affordable housing.
- In addition to subsidy amount you can also avail home loan with a lower interest rate under this scheme. The subsidized interest rate under this scheme is 6.5%.
- Female member will get preference of allotment of a house under this scheme.
Launching affordable housing scheme is a welcome step by the government and it will surely help Low Income Group people in making their own house.
Let’s hope that by 2022 every individuals of India has basic living facility called as a house.